Commentary & Deal Flow

• European € IG primary markets were unsurprisingly quiet given all the recent geo-political turmoil. As a result we only had 4 issuers (1 x Corp, 1 x FIG & 2 x SSA) bringing a collective €2.3bn, via 4 tranches.
• Italy’s Mediocredito Centrale was the only non-SSA borrower to step forward that hadn’t previously been announced; though it is State owned.
• There were no trades in Sterling IG, Swiss Franc IG & the Reg S $ market.
• A breakdown of today’s primary supply is as follows.
• • Corporate
  • • Total IG: €500m
    • Avg. tranche size €500m
    • Avg. IPT to Pricing -40bps
    • Avg. cover 13.80 X
  • FIG
  • • Total IG: €500m
    • Avg. tranche size €500m
    • Avg. IPT to Pricing NA (covered)
    • Avg. IPT to Pricing -20bps (unsecured)
    • Avg. cover 2.00 X
  • SSA
  • • Total IG: €1.3bn
    • Avg. tranche size €650m
    • Avg. IPT to Pricing -1bps
    • Avg. cover 2.48 X
• Pipeline: As expected, the pipeline cleared & remained light. Only the DMO £ trade remains, which has always been scheduled as potentially next week's business.
• • 1 x £ SSA

Euro IG (today)

CORP

• Mandated yesterday, Vesteda Finance B.V. (exp. Issue rating of A by Fitch), the Dutch institutional residential real estate investor, & guaranteed by Custodian Vesteda Fund I B.V., brought its anticipated senior unsecured Green €500m (wng) RegS fixed rate 4 year. IPTs on the trade were in the area of MS+135. Guidance came in late morning at MS+100 area (+/- 5 WPIR), with an orderbook of €4.5bn (pre-rec). Final terms were set as €500m at MS+95, the orderbook having grown to €6.8bn, at reoffer (pre-rec). Final book good at re-offer was  >€6.9bn. 
• This is the first issue by Vesteda since its €500m, 8 year from the 30th of April 2024. In 2018 & 2019 it was ‘BBB+’ credit, issuing €500m, 8 yr trades in each of those years. In 2021 it was a ‘A-’ credit & priced at €500m, 10yr. It remained a ‘A-’ credit for its 2024 issue, however, today’s deal is expected to receive an ‘A’ rating - the shortest deal they have ever issued in the public euro markets.

FIG

• Mediocredito Centrale – Banca Del Mezzogiorno S.p.A. (exp. Issue ratings of BBB / BBBH by S&P & DBRS), issued a €500m (wng), 5.5 year (16th January 2032), Social, senior preferred issue. IPTs were in the area of interpolated BTP+70. Book size was published mid day at €1.1bn (inc. €25m JLMs). Final terms were set at €500m at BTP+50 (equiv. to c.MS+87), with books climbing to €1.2bn (inc. €50m JLMs, pre-rec). The deal priced at BTP+50, with final books of >€1bn, good at reoffer (excl. JLMs). 
• Their last issue was on the 25th of February 2025, when they priced a senior unsecured, €500m, 5yr @ BTP+50. They also issued a single trade in 2024, with a €400m 5yr.
• While it is classified as a financial, the Italian bank is State owned. Rather than acting as a traditional high-street retail bank, it primarily operates as a public policy instrument designed to stimulate economic growth, particularly by driving investment into Southern Italy (the Mezzogiorno).The bank is 100% owned by Invitalia S.p.A., which is Italy's national agency for inward investment & economic development, wholly owned by the Italian Ministry of Economy and Finance (MEF). The credit is, however, firmly classed as a bank. After all, it takes deposits, operates commercial banking subsidiaries (like BdM Banca), & generates income through standard banking activities.

SSA

• Having announced the mandate yesterday, the German Federal State of Rhineland Palatinate (rated AAA by Fitch), brought its anticipated 2 year, €500m (wng) fixed rate Landesschatzanweisung. Guidance on the offering was in the area of MS -2. Books were first called above €575m (exc. JLMs), rising to €727m. The deal was sized at the expected €500m (inc. €100m retained by the issuer) & priced at MS-2. Final books closed above €725m (exc. JLMs). 
• This will be the issuer’s 4th visit to the public € markets in 2026 - having previously raised €1.75bn via 3 issues - a €1bn, 2yr on the 8th of January (MS+1), a €500m 2yr on the 10th of March (MS flat), & most recently a €250m, 9.5yr on the 2nd of April.
• Action Logement Services (rated Aa3 / A+ by Moody’s & Fitch), the French housing association, brought a € benchmark 10 year Sustainable issue. Guidance was interpolated (mid) OAT+27 area. Books were said to be in excess of €2.1bn (inc. €225m JLMs) & the spread set at OAT+25. Final terms saw the size set at €800m, underpinned by an orderbook in excess of €2.6bn (inc. €225m of JLMs). Books closed in excess of €2.6bn (inc. €225m of JLMs). The €800m trade priced at OAT+25; 2bps tighter than IPTs.
• • The borrower last came to the public markets on the 23rd of September last year, with a €1bn 10yr @ OATs +27. They also brought a single trade in 2024 (€500m 15yr in October of that year.

Week-to-date volumes:

Year-to-date volumes:

Sterling IG (today)

• No Supply

Week-to-date volumes:

Year-to-date volumes:

Swiss Franc IG (today)

• No Supply

Week-to-date volumes:

US$ Reg S (today)

• No Supply

Pending Deals & Mandates

Sterling (£)

• Friday 3rd July: The United Kingdom Debt Management Office (DMO) announces the appointment of a syndicate to sell by subscription a re-opening of 1 3/4% Index-linked Treasury Gilt 2038 in the week commencing 13th July 2026, subject to demand & market conditions. Joint Bookrunners: Barclays, BNP Paribas, NatWest & Nomura. Co-Lead Managers: All other wholesale Gilt-edged Market Makers (GEMMs) are being invited to be Co-Lead Managers.

Transaction Details

PRICED: Action Logement Services €800m 10yr Sust; OAT+25bp

IGC European Market: Deal Flow - SSA

Reoffer: 10yr: OAT+25bp / 99.113 / 4.110%
Benchmark: 10yr: Ref Bonds FRTR 1.25% 25-May-36 & FRTR 3.70% 25-Nov-36 / HR 114%

Final Books: In excess of €2.6bn (incl. €225m JLM)

Launched: 10yr: €800m @ OAT+25bp - Books in excess of €2.6bn (incl. €225m JLM)
Spread set at: 10yr: OAT+25bp - Books in excess of €2.1bn (incl. €225m JLM)
Guidance: 10yr: OAT+27a

• Issuer: Action Logement Services
• Ticker: ALSFR
• Issuer Ratings: Aa3 (negative) / A+ (stable) by Moody’s/Fitch
• Format: Senior, Unsecured, Reg S Bearer Dematerialized, Sustainable Bonds
• Coupon: 4% Fixed, Annual, ACT/ACT ICMA, Unadjusted Following
• Tenor: 10yr
• Size: €800m
• Settlement Date: 16-Jul-26 (T+5)
• Maturity Date: 16-Jul-36
• Reoffer: Interpolated OATs (MID) + 25bps / 99.113 / 4.110
• Ref. Bonds: FRTR 1.25% 25-May-36 (Price: 79.004% / Yield: 3.847%) / HR: 114% & FRTR 3.70% 25-Nov-36 (Price: 98.362% / Yield: 3.893%)
• Denominations: €100k + €100k
• Documentation: Issuer’s Sustainable EMTN programme
• Listing: Luxembourg-EuroMTF & Paris-Euronext Growth
• Settlement: Euroclear France
• Governing Law: French
• Lead Managers: Barclays, BNPP, Natixis, Natwest, SG(B&D)
• ISIN code: FR0014019WJ9
• Timing: Priced. TOE: 12:55 UKT / 13:55 CET | FTT immediately
• Target Market: Eligible Counterparties and Professional clients (all distribution channels)
• Advertisement: The final Prospectus, when published, will be available at https://www.bourse.lu/issuer/ActionLogeServ/97084
• Investor Presentation: https://groupe.actionlogement.fr/sites/default/files/2026-07/2026%2007%20-%20Pr%C3%A9sentation%20investisseurs%20-%20EN_VF.pdf
• Sustainable Bond Program Framework: https://groupe.actionlogement.fr/sites/default/files/2025-09/02-2025%2007%20ALS%20Sustainability%20Bond%20Framework_VF.pdf
• SPO: https://groupe.actionlogement.fr/sites/default/files/2025-09/03-EN_EthiFinance_SPO_ALS_VF_04-07-2025.pdf

PRICED: State of Rhineland-Palatinate €500m 2yr Sr Unsec; MS-2bp

IGC European Market: Deal Flow - SSA

Reoffer: 2yr: MS-2bp / 99.829 / 2.839%
Benchmark: 2yr: BKO 2.5 14-Jun-28 @ 99.69% / B+17.7bp / HR 104%

Final Books: Above €850mn (excl JLM interest)

Launched: 2yr: €500m @ MS-2bp - Books above €725mn (excl JLM interest)
Book Update: Books above €575mn (excl JLM interest)
Guidance: 2yr: MS-2a

• Issuer: State of Rhineland-Palatinate
• Ticker: RHIPAL
• Format: Landesschatzanweisung (0% rw, senior unsecured)
• Issuer Rating: AAA (Fitch, stable)
• Size: €500mn (incl. €100m retained by the issuer)
• Coupon: 2.750% fixed, annual, act/act ICMA, unadjusted following, first coupon date 15-Jul-27, last long coupon period
• Settlement: 15-Jul-26 (T+4)
• Maturity: 17-Jul-28 (2 years)
• Reoffer: MS-2bp / 99.829% / 2.839%
• Benchmark: BKO 2.5 14-Jun-28 / + 17.7bps @ 99.69%, HR 104%
• Joint Leads: DekaBank, LBBW (B&D)
• Target Market: Professional, retail and eligible counterparties each as defined in MiFID II (all channels for distribution of the bonds are appropriate)
• Denoms/Listing: German/Frankfurt/€1k+1k
• ISIN/WKN: DE000RLP1692/ RLP169
• Timing: PRICED, ToE 14.40 CET / FTT 15.00 CET

PRICED: Mediocredito Centrale €500m 5.5yr Social SP; BTP+50bp

IGC European Market: Deal Flow - General

Reoffer: 5.5yr: Interpolated BTP+50bp (equiv. to MS+87bp) / 3.816% / 99.695
Benchmark: BTPS 3.15 01-Jun-31 (Price: 99.730% / Yield: 3.234% / HR: 110%) & BTPS 3.25 15-Jul-32 (Price: 99.450% / Yield: 3.380%)

Final Books > €1bn (excl. JLM). Peak book €1.2bn (pre-rec, incl. €50m JLM)

Launched: 5.5yr: €500m @ BTP+50bp (equiv. to ~MS+87bp) - Books at €1.2bn (pre-rec, incl. €50m JLM)
Book Update: Books above €1.1bn (incl. €25m JLM)
IPTs: 5.5yr: BTP+70a

• Issuer: Mediocredito Centrale – Banca Del Mezzogiorno S.p.A. (Ticker: BNCMCC)
• LEI Code: 81560064085A02B2B297
• Issuer Rating: BBB (stable) / BBBH (stable) (S&P/ DBRS)
• Expected Issue Rating: BBB / BBBH (S&P/ DBRS)
• Status of the Notes: Senior Preferred Notes. Unsecured Unsubordinated. Eligible liabilities instruments according to Article 72b CRR2
• Form of Notes: Reg S (Cat 2), Dematerialised Note
• Principal Amount: €500m
• Reference Benchmark: BTPS 3.15 01-Jun-31 (Price: 99.730% / Yield: 3.234%) / HR: 110%) & BTPS 3.25 15-Jul-32 (Price: 99.450% / Yield: 3.380%)
• Reoffer: Interpolated BTP+50bps (equiv. to MS+87bps) / 3.816% / 99.695
• Pricing Date: 09-Jul-26
• Settlement Date: 16-Jul-26 (T+5)
• Maturity Date: 16-Jan-32
• Coupon: 3.75% Fixed, Short First, payable in arrear
• Interest Payment Dates: Annually every 16 January, starting from 16-Jan-27 (First Interest Payment Date) up to and including the Maturity Date
• Redemption: 100% of the Principal Amount
• Day Count Fraction and Business Day Convention: ACT/ACT ICMA, Unadjusted and Following Business Day Convention
• Use of Proceeds: An amount equivalent to the net proceeds of the Notes will be allocated to finance and/or re-finance, in whole or in part, Eligible Social Assets, as defined within the Issuer's Social Financing Framework dated March 2026 available on the Issuer's website at www.mcc.it/wp-content/uploads/2024/07/MCC_Social_Financing_Framework-2026_02.03.26-clean.pdf
• SPO: from ISS-Corporate available at www.mcc.it/wp-content/uploads/2024/07/MCC_Social_Financing_Framework-2026_02.03.26-clean.pdf
• Statutory Bail-in Power: The Notes are subject to the exercise of the Italian Bail-in Power by the Relevant Authority
• Redemption for Tax Reasons: Applicable
• Clean-up Redemption Option: Applicable (75%)
• Redemption for MREL Disqualification Event: If, at any time, the Issuer determines that a MREL Disqualification Event has occurred, the Notes may be redeemed at the option of the Issuer, in whole, but not in part, at par
• Variation following a MREL Disqualification Event or an Alignment Event or in order to ensure the effectiveness and enforceability of Condition 23 (Acknowledgment of Statutory Bail-in Power): Applicable
• Waiver of Set-off Rights: Applicable
• Clearing: Euronext Securities Milano (Monte Titoli)
• Listing: Luxembourg Stock Exchange (Regulated Market)
• Min. Denominations: €100k and integral multiples of €1k in excess thereof
• Sustainability Coordinator: IMI-Intesa Sanpaolo
• Joint Lead Managers: Banca Akros, BNP Paribas, IMI-Intesa Sanpaolo (B&D), Morgan Stanley and UniCredit
• Governing law: Italian Law
• ISIN: IT0005723066
• Documentation: EUR 2bn EMTN Programme dated 20-Mar-26 and supplemented on 08-Jul-26, with standard conditions precedent as per EMTN programme, including auditor’s comfort letters, legal opinions delivered by the legal advisers to the issuer and the joint lead managers, closing certificate
• Target Market: Manufacturer target market (MIFID II and UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No EU PRIIPs key information document (KID) or UK CCI disclosure document has been prepared as not available to retail in EEA or the United Kingdom
• Selling Restrictions: As per the Base Prospectus (Reg S, TEFRA rules not applicable. No communications with or into the U.S.)
• Advertisement: This communication is an advertisement for the purposes of Regulation (EU) 2017/1129 and underlying legislation. It is not a prospectus. The Base Prospectus and the supplement and the Final Terms, when published, will be available at Luxembourg Stock Exchange - MEDIOCREDITO CENTRALE - BANCA DEL MEZZOGIORNO S.P.A. | LuxSE and on the Issuer’s website at https://www.mcc.it/emissioni/aggiornamento-programma-emtn-2026/
• Timing: Priced. TOE: 15.16 UKT / 16.16 CET | FTT: 15.50 UKT / 16.50 CET

5.5yr (January 2032) @ BTP+70 area

Implied Spread for fresh 5.5yr @ BTP+50

Priced at BTP+50
NIC of 0

PRICED: Vesteda Finance €500m 4yr Green Sr Unsec; MS+95bp

IGC European Market: Deal Flow - General

Reoffer: 4yr: MS+95bp / 99.69 / 3.835%
Benchmark: 4yr: OBL 2.4 18-Apr-30 #191 @ 98.88 / B+112bp / HR 104%

Final Books: >€6.9bn. Peak book >€6.9bn.

Launched: 4yr: €500m @ MS+95bp - Orderbook >€6.8bn (pre-rec)
Guidance: 4yr: MS+100a (+/-5 WPIR) - Orderbook >€4.5bn (pre-rec)
IPTs: 4yr: MS+135a

• Issuer: Vesteda Finance B.V. (Ticker VESTNL, Country: NL)
• Issuer LEI: 72450072M9HBDGD2GH67
• Guarantor: Custodian Vesteda Fund I B.V.
• Guarantor LEI: 724500YVNMNZMZFQUO84
• Issuer Ratings: BBB (stable) by S&P, expected A- (stable) by Fitch
• Expected Rating of the Notes: A by Fitch
• Format: Senior, Unsecured, Reg S, Bearer, New Global Note, Green Bond
• Tenor: 4 years
• Size: €500m
• Settlement Date: 16-Jul-26 (T+5)
• Maturity Date: 16-Jul-30
• Reoffer: MS + 95bps/ 3.835% / 99.69
• Coupon: 3.75% Fixed (Annual, Act/Act, ICMA)
• Benchmark Bund: B+112 bps (OBL 2.4 18-Apr-30 #191 @ 98.88 / 2.715%) HR : 104%
• Marketing: A NetRoadshow presentation has been made available at www.netroadshow.com/event/Vesteda2026 or at https://www.netroadshow.com with deal entry code: Vesteda2026
• Documentation: €4.0bn EMTN Programme dated 02-Jul-26 (the “Offering Circular”)
• Listing: Euronext Dublin (GEM)
• Governing Law: Dutch
• Denominations: €100k x €1k
• Early Redemption: Make-Whole Call (B+20), 1m Par Call, Clean-Up Call (80%), Change of Control at par
• Covenants: 1) Negative Pledge, 2) Interest Coverage Ratio (EBITDA to Total Interest) ≥1.8x, 3) Loan to Value Ratio ≤50%, 4) Encumbrance of Vesteda Group Assets ≤30%, all as per the Offering Circular
• Use of Proceeds: To finance and/or refinance, in whole or in part, Eligible Assets as outlined in the Issuer’s Green Finance Framework dated December 2023 (including payment of the consideration for the proposed tender of the Issuer's existing notes (ISIN: XS2001183164))
• Green Finance Documents: The Green Finance Framework and Second Party Opinion are available on https://www.vesteda.com/en/corporate/investment/debt/green-bond-programme. Neither the Green Finance Framework nor the Second Party Opinion form part of the Offering Materials
• ISIN: XS3441750711
• Selling Restrictions: As per the Issuer’s EMTN Programme (Reg S Cat. 2; TEFRA D, EEA (no sales to retail), United Kingdom (no sales to retail), Japan, The Netherlands, Belgium, France, Singapore, Switzerland, Canada)
• Target Market / PRIIPs: Manufacturer target market (MiFID II/UK MiFIR product governance) is eligible counterparties and professional investors only (all distribution channels). No PRIIPs key information document (KID) or FCA Product Disclosure Sourcebook (DISC) disclosure document has been prepared as not available to retail in EEA or in the UK
• Joint Bookrunners: ABN AMRO, BNP Paribas, ING (B&D), Rabobank, SMBC
• Advertisement: This communication is an advertisement for the purposes of Regulation (EU) 2017/1129 and underlying legislation. It is not a prospectus. The Offering Circular is available at https://www.vesteda.com/en/corporate/investment/debt/emtn-programme, and the Final Terms, when published, will be available at https://live.euronext.com/
• Timing: TOE: 16:35 CET/ FTT: 17:00 CET

Details correct at time of posting